Question 1 Sheridan Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6410000 on March 1, $5250000 on June 1, and $8050000 on December 31. Sheridan Company borrowed $3220000 on January 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 11%, 3-year, $6370000 note payable and an 12%, 4-year, $12050000 note payable. What is the weighted average interest rate used for interest capitalization purposes? 11.65% 11.85% 11.50% 12.00%